Business Account Disclosures
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT - To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account, we will ask for your name, address, date of birth (for individuals), and other information that will allow us to identify you. We may also ask to see your driver’s license (for individuals) or other identifying documents.
To become a member of MSUFCU, you must satisfy the membership requirements, including the opening and maintenance of at least one (1) regular business share account as set forth in the MSUFCU Bylaws. You authorize us to verify your membership qualifications or any other products or services you apply for by reviewing your account, credit and employment history, and by obtaining information from third parties, including, but not limited to, credit-reporting companies.
RESPONSIBLE INDIVIDUALS AND AUTHORIZED SIGNERS:
We allow the following two access levels for accounts: responsible individuals and authorized signers. Each person with access to the account has the ability to withdrawal funds, write checks and make other transactions on the business’ behalf. We require that each account have a minimum of one (1) responsible individual, that person will be held personally liable for all obligations created by the business’ account, including, but not limited to overdraft situations and returned deposited items, regardless of the individual who caused such situation. Authorized signers will not be held liable for the obligations of the business to the extent that they have not otherwise agreed to be held liable.
AGREEMENT - This document, along with any other documents we give you pertaining to your account(s), is a contract that establishes rules which control your account(s) with us. Please read this carefully and retain it for future reference. If you sign the signature card or open or continue to use the account, you agree to these rules. You will receive a separate schedule of rates, qualifying balances, and fees if they are not included in this document. If you have any questions, please call us.
This agreement is subject to applicable federal laws, the laws of the state of Michigan and other applicable rules such as the operating letters of the Federal Reserve Banks and payment processing system rules (except to the extent that this agreement can and does vary such rules or laws). The body of state and federal law that governs our relationship with you, however, is too large and complex to be reproduced here. The purpose of this document is to:
(1) summarize some laws that apply to common transactions;
(2) establish rules to cover transactions or events which the law does not regulate;
(3) establish rules for certain transactions or events which the law regulates but permits variation by agreement; and
(4) give you disclosures of some of our policies to which you may be entitled or in which you may be interested.
If any provision of this document is found to be unenforceable according to its terms, all remaining provisions will continue in full force and effect. We may permit some variations from our standard agreement, but we must agree to any variation in writing either on the signature card for your account or in some other document.
As used in this document the words “we,” “our,” and “us” mean the financial institution and the words “you” and “your” mean the account holder(s) and anyone else with the authority to deposit, withdraw, or exercise control over the funds in the account. However, this agreement does not intend, and the terms “you” and “your” should not be interpreted, to expand an individual’s responsibility for an organization’s liability. If this account is owned by a corporation, partnership or other organization, individual liability is determined by the laws generally applicable to that type of organization. The headings in this document are for convenience or reference only and will not govern the interpretation of the provisions. Unless it would be inconsistent to do so, words and phrases used in this document should be construed so the singular includes the plural and the plural includes the singular.
BYLAWS - Our bylaws, which we may amend from time to time, establish basic rules about our credit union policies and operations which affect your account and membership. You may obtain a copy of the bylaws on request. Our right to require you to give us notice of your intention to withdraw funds from your account is described in the bylaws. Unless we have agreed otherwise, you are not entitled to receive any original item after it is paid, although you may request that we send you an item(s) or a copy of an item(s).
LIABILITY - You agree, for yourself (and the person or entity you represent if you sign as a representative of another) to the terms of this account and the schedule of charges. You authorize us to deduct these charges, without notice to you, directly from the account balance as accrued. You will pay any additional reasonable charges for services you request which are not covered by this agreement.
Each of you also agrees to be jointly and severally (individually) liable for any account shortage resulting from charges or overdrafts, whether caused by you or another with access to this account. This liability is due immediately, and can be deducted directly from the account balance whenever sufficient funds are available. You have no right to defer payment of this liability, and you are liable regardless of whether you signed the item or benefited from the charge or overdraft.
You will be liable for our costs as well as for our reasonable attorneys’ fees, to the extent permitted by law, whether incurred as a result of collection or in any other dispute involving your account. This includes, but is not limited to, disputes between you and another joint owner; you and an authorized signer or similar party; or a third party claiming an interest in your account. This also includes any action that you or a third party takes regarding the account that causes us, in good faith, to seek the advice of an attorney, whether or not we become involved in the dispute. All costs and attorneys’ fees can be deducted from your account when they are incurred, without notice to you.
DEPOSITS - We will give only provisional credit until collection is final for any items, other than cash, we accept for deposit (including items drawn “on us”). Before settlement of any item becomes final, we act only as your agent, regardless of the form of indorsement or lack of indorsement on the item and even though we provide you provisional credit for the item. We may reverse any provisional credit for items that are lost, stolen, or returned. Actual credit for deposits of, or payable in, foreign currency will be at the exchange rate in effect on final collection in U.S. dollars. We are not responsible for transactions by mail or outside depository until we actually record them. We will treat and record all transactions received after our “daily cutoff time” on a business day we are open, or received on a day we are not open for business, as if initiated on the next business day that we are open. At our option, we may take an item for collection rather than for deposit. If we accept a third-party check for deposit, we may require any third-party indorsers to verify or guarantee their indorsements, or indorse in our presence.
Generally - Unless clearly indicated otherwise on the account records, any of you, acting alone, who signs to open the account or has authority to make withdrawals may withdraw or transfer all or any part of the account balance at any time. Each of you (until we receive written notice to the contrary) authorizes each other person who signs or has authority to make withdrawals to indorse any item payable to you or your order for deposit to this account or any other transaction with us.
Postdated checks - A postdated check is one which bears a date later than the date on which the check is written. We may properly pay and charge your account for a postdated check even though payment was made before the date of the check, unless we have received written notice of the postdating in time to have a reasonable opportunity to act. Because we process checks mechanically, your notice will not be effective and we will not be liable for failing to honor your notice unless it precisely identifies the number, date, amount and payee of the item.
Checks and withdrawal rules - If you do not purchase your check blanks from us, you must be certain that we approve the check blanks you purchase. We may refuse any withdrawal or transfer request which you attempt on forms not approved by us or by any method we do not specifically permit. We may refuse any withdrawal or transfer request which is greater in number than the frequency permitted, or which is for an amount greater or less than any withdrawal limitations. We will use the date the transaction is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. In addition, we may place limitations on the account until your identity is verified. Even if we honor a nonconforming request, we are not required to do so later. If you violate the stated transaction limitations (if any), in our discretion we may close your account or reclassify it as a transaction account. If we reclassify your account, your account will be subject to the fees and earnings rules of the new account classification.
If we are presented with an item drawn against your account that would be a “substitute check,” as defined by law, but for an error or defect in the item introduced in the substitute check creation process, you agree that we may pay such item.
See the funds availability policy disclosure for information about when you can withdraw funds you deposit. For those accounts to which our funds availability policy disclosure does not apply, you can ask us when you make a deposit when those funds will be available for withdrawal. We may determine the amount of available funds in your account for the purpose of deciding whether to return an item for insufficient funds at any time between the time we receive the item and when we return the item or send a notice in lieu of return. We need only make one determination, but if we choose to make a subsequent determination, the account balance at the subsequent time will determine whether there are insufficient available funds.
Overdrafts - You understand that we may, at our discretion, honor withdrawal requests that overdraw your account. However, the fact that we may honor withdrawal requests that overdraw the account balance does not obligate us to do so later. So you can NOT rely on us to pay overdrafts on your account regardless of how frequently or under what circumstances we have paid overdrafts on your account in the past. We can change our practice of paying overdrafts on your account without notice to you. You can ask us if we have other account services that might be available to you where we commit to paying overdrafts under certain circumstances, such as an overdraft protection line-of-credit or a plan to sweep funds from another account you have with us. You agree that we may charge fees for overdrafts, except for overdrafts caused by ATM withdrawals or one-time debit card transactions if you have not opted-in to that service. We may use subsequent deposits, including direct deposits of social security or other government benefits, to cover such overdrafts and overdraft fees.
Multiple signatures, electronic check conversion, and similar transactions - An electronic check conversion transaction is a transaction where a check or similar item is converted into an electronic fund transfer as defined in the Electronic Fund Transfers regulation. In these types of transactions the check or similar item is either removed from circulation (truncated) or given back to you. As a result, we have no opportunity to review the check to examine the signatures on the item. You agree that, as to these or any items as to which we have no opportunity to examine the signatures, you waive any requirement of multiple signatures.
BUSINESS, ORGANIZATION AND ASSOCIATION ACCOUNTS - Earnings in the form of interest, dividends, or credits will be paid only on collected funds, unless otherwise provided by law or our policy. You represent that you have the authority to open and conduct business on this account on behalf of the entity. We may require the governing body of the entity opening the account to give us a separate authorization telling us who is authorized to act on its behalf. We will honor the authorization until we actually receive written notice of a change from the governing body of the entity.
STOP PAYMENTS - Unless otherwise provided, the rules in this section cover stopping payment of items such as checks and drafts. Rules for stopping payment of other types of transfers of funds, such as consumer electronic fund transfers, may be established by law or our policy. If we have not disclosed these rules to you elsewhere, you may ask us about those rules.
We may accept an order to stop payment on any item from any one of you. You must make any stop-payment order in the manner required by law and we must receive it in time to give us a reasonable opportunity to act on it before our stop-payment cutoff time. Because stop-payment orders are handled by computers, to be effective, your stop-payment order must precisely identify the number, date, and amount of the item, and the payee. You may stop payment on any item drawn on your account whether you sign the item or not. Generally, if your stop-payment order is given to us in writing it is effective for six months. Your order will lapse after that time if you do not renew the order in writing before the end of the six-month period. If the original stop-payment order was verbal your stop-payment order will lapse after 14 calendar days if you do not confirm your order in writing within that time period. We are not obligated to notify you when a stop-payment order expires. A release of the stop-payment request may be made only by the person who initiated the stop-payment order.
If you stop payment on an item and we incur any damages or expenses because of the stop payment, you agree to indemnify us for those damages or expenses, including attorneys’ fees. You assign to us all rights against the payee or any other holder of the item. You agree to cooperate with us in any legal actions that we may take against such persons. You should be aware that anyone holding the item may be entitled to enforce payment against you despite the stop-payment order.
TRANSFER LIMITATIONS - For savings and money market accounts you may make up to six transfers or withdrawals by means of a preauthorized, automatic, or telephonic transfer to another account of yours or to a third party or by check, debit card, or similar order to a third party during any calendar month (or statement cycle of at least four weeks). A preauthorized transfer includes any arrangement with us to pay a third party from your account at (i) a predetermined time; (ii) on a fixed schedule or (iii) upon oral or written orders including orders received through the automated clearing house (ACH). If the transfer or withdrawal is initiated in person, by mail, or at an ATM then there is no limit on the number of payments that may be made directly to you, directly to us for amounts you owe us, or transfers to other accounts you have with us. Withdrawals by phone are also unlimited if you are requesting that a check be mailed to you.
AMENDMENTS AND TERMINATION - We may change our bylaws and any term of this
agreement. Rules governing changes in rates are provided separately in the Truth-in-Savings disclosure or in another document. For other changes we will give you reasonable notice in writing or by any other method permitted by law. We may close this account if your membership in the credit union terminates, or by giving reasonable notice to you and tender of the account balance personally or by mail. Items presented for payment after the account is closed may be dishonored. When you close your account, you are responsible for leaving enough money in the account to cover any outstanding items and charges to be paid from the account. Reasonable notice depends on the circumstances, and in some cases such as when we cannot verify your identity or we suspect fraud, it might be reasonable for us to give you notice after the change or account closure becomes effective. For instance, if we suspect fraudulent activity with respect to your account, we might immediately freeze or close your account and then give you notice. At our option, we may suspend your rights to member services if you violate the terms of this agreement. You must keep us informed of your current address at all times. Notice from us to any one of you is notice to all of you. If we have notified you of a change in any term of your account and you continue to have your account after the effective date of the change, you have agreed to the new term(s).
STATEMENTS - Statements are a valuable tool to help prevent fraudulent or mistaken transfers. Your statement will show the transactions that occurred in connection with your account during the statement period.
Your duty to report unauthorized signatures, alterations and forgeries - Your statement will provide sufficient information for you to reasonably identify the items paid (item number, amount, and date of payment). You should keep a record of each transaction as it is made so that when we give you the information in the statement, you will have a complete understanding of each transaction listed.
You have some responsibilities in connection with your statement. You must examine your statement with “reasonable promptness.” Also, if you discover (or reasonably should have discovered) any unauthorized signatures or alterations, you must promptly notify us of the relevant facts. As between you and us, if you fail to do either of these duties, you must bear the loss entirely yourself or share the loss with us (we may have to share some of the loss if we failed to use ordinary care and if we substantially contributed to the loss). The loss you might bear, in whole or part, could be not only with respect to items listed on the statement, but also other items with unauthorized signatures or alterations by the same wrongdoer. Of course, an attempt can be made to recover the loss from the thief, but this is often unsuccessful.
You agree that the time you have to examine your statement and report to us will depend on the circumstances, but you will not, in any circumstance, have a total of more than 30 days from when we first send or make the statement available to you.
You further agree that if you fail to report any unauthorized signatures, alterations or forgeries in your account within 60 days of when we first send or make the statement available, you cannot assert a claim against us on any items in that statement, and as between you and us the loss will be entirely yours. This 60-day limitation is without regard to whether we exercised ordinary care. The limitation in this paragraph is in addition to those contained in the second paragraph of this section.
Contact us if you do not receive your regular statement. If this is a business account, you agree that you will have at least two people review your statements, notices, and returned checks, or in the alternative, the person who reviews these will be someone who does not have authority to transact business on the account.
Your duty to report other errors - In addition to the Commercial Code and other state law, you agree there is a common law duty to promptly review your statement for errors in addition to unauthorized signatures, alterations or forgeries. Promptly reviewing your statement is valuable to both you and us because it can help identify, correct and prevent future mistakes.
In addition to your duty to review your statements for unauthorized signatures, alterations and forgeries, you agree to examine your statement with reasonable promptness for any other error - such as an encoding error. You agree that the time you have to examine your statement and report to us will depend on the circumstances. However, such time period shall not exceed 60 days. Failure to examine your statement and report any such errors to us within 60 days of when we first send or make the statement available precludes you from asserting a claim against us for any such errors on items identified in that statement and as between you and us the loss will be entirely yours. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the 60 day time period to report other errors.
ACCOUNT TRANSFER - If you attempt to transfer or assign all or a part of your account, we will not be bound by the transfer or assignment until we agree in writing to the transfer or assignment. We are not required to accept or recognize any transfer or assignment. Unless we agree otherwise in writing, any rights of a transferee or assignee will be subject to our right of setoff or prior security interest. We have no obligation to notify you or any other person before disbursing any funds from your account in accordance with what we in good faith believe to be the terms of the transfer or assignment.
DIRECT DEPOSITS - If we are required for any reason to reimburse the federal government for all or any portion of a benefit payment that was directly deposited into your account, you authorize us to deduct the amount of our liability to the federal government from the account or from any other account you have with us, without prior notice and at any time, except as prohibited by law. We may also use any other legal remedy to recover the amount of our liability.
RIGHT TO REPAYMENT OF INDEBTEDNESS - You each agree that we may (without prior notice and when permitted by law) charge against and deduct from this account any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such persons’ or legal entity’s right to withdraw. If the debt arises from a note, “any due and payable debt” includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balance the due date for which we properly accelerate under the note.
In addition to these contract rights, we may also have rights under a “statutory lien.” A “lien” on property is a creditor’s right to obtain ownership of the property in the event a debtor defaults on a debt. A “statutory lien” is one created by federal or state statute. If federal or state law provides us with a statutory lien, then we are authorized to apply, without prior notice, your shares and dividends to any debt you owe us, in accord with the statutory lien.
Neither our contract rights nor rights under a statutory lien apply to this account if prohibited by law. For example, neither our contract rights nor rights under a statutory lien apply to this account if: (a) it is an Individual Retirement Account or similar tax-deferred account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), or (c) the debtor’s right of withdrawal arises only in a representative capacity. We will not be liable for the dishonor of any check or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment.
RESTRICTIVE LEGENDS - The automated processing of the large volume of checks we receive prevents us from inspecting or looking for special instructions or “restrictive legends” on every check. Examples of restrictive legends placed on checks are “must be presented within 90 days” or “not valid for more than $1,000.00.” For this reason, we are not required to honor any restrictive legend placed on checks you write unless we have agreed in writing to the restriction. We are not responsible for any losses, claims, damages, or expenses that result from your placement of these or other special instructions on your checks.
CHECK PROCESSING - We process items mechanically by relying solely on the information encoded in magnetic ink along the bottom of the items. This means that we do not individually examine all of your items to determine if the item is properly completed, signed and indorsed or to determine if it contains any information other than what is encoded in magnetic ink. You agree that we have not failed to exercise ordinary care solely because we use our automated system to process items and do not inspect all items processed in such a manner. Using an automated process helps us keep costs down for you and all account holders.
CHECK CASHING - We may charge a fee for anyone that does not have an account with us who is cashing a check, draft or other instrument written on your account. We may also require reasonable identification to cash such a check, draft or other instrument. We can decide what identification is reasonable under the circumstances and such identification may be documentary or physical and may include collecting a thumbprint or fingerprint.
TRUNCATION, SUBSTITUTE CHECKS, AND OTHER CHECK IMAGES - If you truncate an original check and create a substitute check, or other paper or electronic image of the original check, you warrant that no one will be asked to make payment on the original check, a substitute check or any other electronic or paper image, if the payment obligation relating to the original check has already been paid. You also warrant that any substitute check you create conforms to the legal requirements and generally accepted specifications for substitute checks. You agree to retain the original check in conformance with our internal policy for retaining original checks. You agree to indemnify us for any loss we may incur as a result of any truncated check transaction you initiate. We can refuse to accept substitute checks that have not previously been warranted by a bank or other financial institution in conformance with the Check 21 Act. Unless specifically stated in a separate agreement between you and us, we do not have to accept any other electronic or paper image of an original check.
FACSIMILE SIGNATURES - Unless you make advance arrangements with us, we have no obligation to honor facsimile signatures on your checks or other orders. If we do agree to honor items containing facsimile signatures, you authorize us, at any time, to charge you for all checks, drafts, or other orders, for the payment of money, that are drawn on us. You give us this authority regardless of by whom or by what means the facsimile signature(s) may have been affixed so long as they resemble the facsimile signature specimen filed with us, and contain the required number of signatures for this purpose. You must notify us at once if you suspect that your facsimile signature is being or has been misused.
REMOTELY CREATED CHECKS - Like any standard check or draft, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a check or draft that can be used to withdraw money from an account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signature of the account owner). In place of a signature, the check usually has a statement that the owner authorized the check or has the owner’s name typed or printed on the signature line. For example, if a person provides an account number in response to a telephone solicitation, the telephone solicitor can use the account number to issue a remotely created check to withdraw money from that account.
You warrant and agree to the following for every remotely created check we receive from you for deposit or collection: (1) you have received express and verifiable authorization to create the check in the amount and to the payee that appears on the check; (2) you will maintain proof of the authorization for at least 2 years from the date of the authorization, and supply us the proof if we ask; and (3) if a check is returned you owe us the amount of the check, regardless of when the check is returned. We may take funds from your account to pay the amount you owe us, and if there are insufficient funds in your account, you still owe us the remaining balance.
UNLAWFUL INTERNET GAMBLING NOTICE - Restricted transactions as defined in Federal Reserve Regulation GG are prohibited from being processed through this account or relationship. Restricted transactions generally include, but are not limited to, those in which credit, electronic fund transfers, checks, or drafts are knowingly accepted by gambling businesses in connection with the participation by others in unlawful Internet gambling.
FIDUCIARY ACCOUNTS - Accounts may be opened by a person acting in a fiduciary capacity. A fiduciary is someone who is appointed to act on behalf of and for the benefit of another. This account may be opened and maintained by a person or persons named as a trustee under a written trust agreement, or as executors, administrators, or conservators under court orders. You understand that by merely opening such an account, we are not acting in the capacity of a trustee in connection with the trust nor do we undertake any obligation to monitor or enforce the terms of the trust or letters.
TELEPHONIC INSTRUCTIONS - Unless required by law or we have agreed otherwise in writing, we are not required to act upon instructions you give us via facsimile transmission or leave by voice mail or on a telephone answering machine.
WAIVER OF NOTICES - You waive any notice of non-payment, dishonor or protest regarding any items credited to or charged against your account.
FUNDS TRANSFERS - The terms used in this section have the meaning given to them in Article 4A of the Uniform Commercial Code - Funds Transfers (UCC 4A). This section will generally not apply to you if you are a consumer. However, even if you are a consumer, this section will apply to that part of any funds transfer that is conducted by Fedwire. This section is subject to UCC 4A as adopted in the state in which you have your deposit with us. This agreement is also subject to all clearing house association rules, rules of the Board of Governors of the Federal Reserve System and their operating circulars. If any part of this agreement is determined to be unenforceable, the rest of the agreement remains effective. This agreement controls funds transfers unless supplemented or amended in a separate written agreement signed by us.
Funds transfer - A funds transfer is the transaction or series of transactions that begin with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order. A funds transfer is completed by the acceptance by the beneficiary’s bank of a payment order for the benefit of the beneficiary of the originator’s order. Generally, a funds transfer does not include any transaction if any part of the transfer is covered by the Electronic Fund Transfer Act of 1978, as amended from time to time. You may give us a payment order orally, electronically, or in writing, but your order cannot state any condition to payment to the beneficiary other than the time of payment.
Authorized account - An authorized account is a deposit account you have with us that you have designated as a source of payment of payment orders you issue to us. If you have not designated an authorized account, any account you have with us is an authorized account to the extent that payment of the payment order is not inconsistent with the use of the account.
Acceptance of your payment order - We are not obligated to accept any payment order that you give us, although we normally will accept your payment order if you have a withdrawable credit in an authorized account sufficient to cover the order. If we do not execute your payment order, but give you notice of our rejection of your payment order after the execution date or give you no notice, we are not liable to pay you as restitution any interest on a withdrawable credit in a non-interest-bearing account.
Cutoff time - If we do not receive your payment order or communication canceling or amending a payment order before our cutoff time on a funds transfer day for that type of order or communication, the order or communication will be deemed to be received at the opening of our next funds transfer business day.
Payment of your order - If we accept a payment order you give us, we may receive payment by automatically deducting from any authorized account the amount of the payment order plus the amount of any expenses and charges for our services in execution of your payment order. We are entitled to payment on the payment or execution date. Unless your payment order specifies otherwise, the payment or execution date is the funds transfer date we receive the payment order. The funds transfer is completed upon acceptance by the beneficiary’s bank. Your obligation to pay your payment order is excused if the funds transfer is not completed, but you are still responsible to pay us any expenses and charges for our services. However, if you told us to route the funds transfer through an intermediate bank, and we are unable to obtain a refund because the intermediate bank that you designated has suspended payments, then you are still obligated to pay us for the payment order. You will not be entitled to interest on any refund you receive because the beneficiary’s bank does not accept the payment order.
Security procedure - As described more fully in a separate writing, the authenticity of a payment order or communication canceling or amending a payment order issued in your name as sender may be verified by a security procedure. You affirm that you have no circumstances which are relevant to the determination of a commercially reasonable security procedure unless those circumstances are expressly contained in a separate writing signed by us. You may choose from one or more security procedures that we have developed, or you may develop your own security procedure if it is acceptable to us. If you refuse a commercially reasonable security procedure that we have offered you, you agree that you will be bound by any payment order issued in your name, whether or not authorized, that we accept in good faith and in compliance with the security procedure you have chosen.
Duty to report unauthorized or erroneous payment - You must exercise ordinary care to determine that all payment orders or amendments to payment orders that we accept that are issued in your name are authorized, enforceable, in the correct amount, to the correct beneficiary, and not otherwise erroneous. If you discover (or with reasonable care should have discovered) an unauthorized, unenforceable, or erroneously executed payment order or amendment, you must exercise ordinary care to notify us of the relevant facts. The time you have to notify us will depend on the circumstances, but that time will not in any circumstance exceed 14 days from when you are notified of our acceptance or execution of the payment order or amendment or that your account was debited with respect to the order or amendment. If you do not provide us with timely notice you will not be entitled to interest on any refundable amount. If we can prove that you failed to perform either of these duties with respect to an erroneous payment and that we incurred a loss as a result of the failure, you are liable to us for the amount of the loss not exceeding the amount of your order.
Identifying number - If your payment order identifies an intermediate bank, beneficiary bank, or beneficiary by name and number, we and every receiving or beneficiary bank may rely upon the identifying number rather than the name to make payment, even if the number identifies an intermediate bank or person different than the bank or beneficiary identified by name. Neither we nor any receiving or beneficiary bank have any responsibility to determine whether the name and identifying number refer to the same financial institution or person.
Record of oral or telephone orders - You agree that we may, if we choose, record any oral or telephone payment order or communication of amendment or cancelation.
Notice of credit - If we receive a payment order to credit an account you have with us, we are not required to provide you with any notice of the payment order or the credit.
Provisional credit - You agree to be bound by the automated clearing house association operating rules that provide that payments made to you or originated by you by funds transfer through the automated clearing house system are provisional until final settlement is made through a Federal Reserve Bank or otherwise payment is made as provided in Article 4A-403(a) of the Uniform Commercial Code.
Refund of credit - You agree that if we do not receive payment of an amount credited to your account, we are entitled to a refund from you in the amount credited and the party originating such payment will not be considered to have paid the amount so credited.
Amendment of funds transfer agreement - From time to time we may amend any term of this agreement by giving you reasonable notice in writing. We may give notice to anyone who is authorized to send payment orders to us in your name, or to anyone who is authorized to accept service.
Cancelation or amendment of payment order - You may cancel or amend a payment order you give us only if we receive the communication of cancelation or amendment before our cutoff time and in time to have a reasonable opportunity to act on it before we accept the payment order. The communication of cancelation or amendment must be presented in conformity with the same security procedure that has been agreed to for payment orders.
Intermediaries - We are not liable for the actions of any intermediary, regardless of whether or not we selected the intermediary. We are not responsible for acts of God, outside agencies, or nonsalaried agents.
Limit on liability - You waive any claim you may have against us for consequential or special damages, including loss of profit arising out of a payment order or funds transfer, unless this waiver is prohibited by law. We are not responsible for attorney fees you might incur due to erroneous execution of payment order.
Erroneous execution - If we receive an order to pay you, and we erroneously pay you more than the amount of the payment order, we are entitled to recover from you the amount in excess of the amount of the payment order, regardless of whether you may have some claim to the excess amount against the originator of the order.
Objection to payment - If we give you a notice that reasonably identifies a payment order issued in your name as sender that we have accepted and received payment for, you cannot claim that we are not entitled to retain the payment unless you notify us of your objection to the payment within one year of our notice to you.
Payable on Death Account for Sole Proprietorships - If a Beneficiary has been designated on the Business Account Application in the case of an account opened for a Sole Proprietorship only, a Payable on Death (POD) account is established in order to designate any surviving POD beneficiary. If more than one POD beneficiary is named, the ownership of account balances passes to all such beneficiaries without rights of survivorship and in the fractional shares as indicated on the Business Account Application, upon the death of the last surviving owner of the Sole Proprietorship. If no percentages are listed on the Business Account Application, each named beneficiary will take an equal share in the account balances. If no named POD beneficiary is living at the time of death of the last surviving owner of the Sole Proprietorship, the account shall be considered as a part of the last surviving owner of the Sole Proprietorship’s estate.
Death of an Account Owner of Sole Proprietorship (this provision applies to Sole Proprietorship Accounts only) - If the account was opened for a Sole Proprietorship, you irrevocably waive the right to make a testamentary disposition of any account with the Credit Union now or in the future. You agree that upon your death, your account will be payable in accordance with any existing account designations and the terms of the Agreement. Upon the death of an account owner, funds in the account shall be payable to multiple party account owners or any POD beneficiaries in accordance with this Agreement and Michigan law. We may honor checks or accept payments or transfers drawn by you until ten (10) days after we learn of your death. We require any person claiming an interest in the deceased member’s account to provide us proof of their right to the account and may require that person to indemnify us from any losses incurred as a result of honoring that claim. The conditions of this Business Membership and Account Agreement shall be binding upon any heirs, personal representatives, and successors of any account owner after his or her death.
Termination of Account - We may close your account at any time without informing you or may order you to close your account and open a new account if: (1) you wish to change Authorized Signers or the ownership of the business entity or other legal entity has changed; (2) we have been informed of a fraud or forgery perpetrated against your account; (3) there is a disagreement as to who owns the account or the funds in the account; (4) any checks are lost or stolen; (5) if there is an excessive amount of unhonored items that are not included under an overdraft protection account; (6) any information has been falsified or there has been any other misuse of your account; or (7) we objectively conclude that the account will cause a loss to us. We are not required to honor any check, withdrawal, or other item following the closure of your account. However, you are required to reimburse us if we choose to honor an item after your account has been closed.
Termination of Membership - Unless a written resolution from the business entity is provided, a Responsible Individual’s signature is required if you wish to voluntarily terminate your membership. MSUFCU may suspend services to you or expel you from membership, for any reason as permitted by law, including causing a loss to the Credit Union.
Indemnity - If by following your instructions we are exposed to a claim or suit by an adverse claimant, you shall hold us harmless and indemnify us from any such losses, expenses, liabilities, or damages including actual attorney’s fees.
PLEDGES - Each owner of this account may pledge all or any part of the funds in it for any purpose to which we agree. Any pledge of this account must first be satisfied before the rights of any surviving account owner or account beneficiary become effective. For example, if an account has two owners and one of the owners pledges the account (i.e., uses it to secure a debt) and then dies, (1) the surviving owner’s rights in this account do not take effect until the debt has been satisfied, and (2) the debt may be satisfied with the funds in this account.
STALE-DATED CHECKS - We are not obligated to, but may at our option, pay a check, other than a certified check, presented for payment more than six months after its date. If you do not want us to pay a stale-dated check, you must place a stop-payment order on the check in the manner we have described elsewhere.
NCUA INSURANCE - Funds in your account(s) with us are insured by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the United States. The amount of insurance coverage you have depends on the number of accounts you have with us that are of different “ownership.” An individual account is one unique form of “ownership”; a joint account, a pay-on-death account, and a self directed qualified retirement account (e.g., an IRA) are examples of some of the others. Share insurance for a person’s self directed qualified retirement account is up to $250,000. (An IRA is a self directed qualified retirement account as is any account where the owner decides where and how to invest the balance.) Share insurance for the other ownerships is at least $250,000 per interest of the owner. If you want a more detailed explanation or additional information, you may ask us or contact the NCUA. You can also visit the NCUA website at www.ncua.gov and click on the Share Insurance link. The link includes detailed contact information as well as a share insurance estimator.
INDORSEMENTS - We may accept for deposit any item payable to you or your order, even if they are not indorsed by you. We may give cash back to any one of you. We may supply any missing indorsement(s) for any item we accept for deposit or collection, and you warrant that all indorsements are genuine.
To ensure that your check or share draft is processed without delay, you must indorse it (sign it on the back) in a specific area. Your entire indorsement (whether a signature or a stamp) along with any other indorsement information (e.g. additional indorsements, ID information, driver’s license number, etc.) must fall within 1½” of the “trailing edge” of a check. Indorsements must be made in blue or black ink, so that they are readable.
As you look at the front of a check, the “trailing edge” is the left edge. When you flip the check over, be sure to keep all indorsement information within 1½” of that edge.
It is important that you confine the indorsement information to this area since the remaining blank space will be used by others in the processing of the check to place additional needed indorsements and information. You agree that you will indemnify, defend, and hold us harmless for any loss, liability, damage or expense that occurs because your indorsement, another indorsement or information you have printed on the back of the check obscures our indorsement.
These indorsement guidelines apply to both personal and business checks.
DORMANT ACCOUNT - We will consider an account to be dormant if there are no deposits or withdrawals for a period of eighteen (18) months. Exceptions are loan accounts and Certificates.
When an account becomes dormant and has a balance of less than $500.00, we will charge a monthly dormant account fee as stated in the Business Fee Schedule, unless restricted by law. The fee will be charged until the account becomes active or there are no funds available to pay the fee. You authorize us to transfer funds from other accounts of yours to cover any service fees we may impose upon the account deemed dormant. To the extent allowed by law, we reserve the right to transfer account funds to an account payable and suspend any further account statements. We will attempt to notify you prior to your account becoming dormant. If a deposit or withdrawal has not been posted to your account for thirty-six (36) consecutive months, and we have not had any other contact with you, we will consider your account abandoned. We will report and disburse the funds from an abandoned account in accordance with Michigan law. Dormant accounts receive only an annual statement.
DEATH OR INCOMPETENCE - You agree to notify us promptly if any person with a right to withdraw funds from your account(s) dies or becomes legally incompetent. We may continue to honor your checks, items, and instructions until: (a) we know of your death or incompetence, and (b) we have had a reasonable opportunity to act on that knowledge. You agree that we may pay or certify checks drawn on or before the date of death or legal incompetence for up to ten (10) days after your death or legal incompetence unless ordered to stop payment by someone claiming an interest in the account.
CASH TRANSACTION REPORTING - To help law enforcement agencies detect illegal activities, the law requires all financial institutions to gather and report information on some types of cash transactions. If the information we need to complete the report is not provided, we are required to refuse to handle the transaction. If you have any questions regarding these rules, please contact your local Internal Revenue Service office.
BACKUP WITHHOLDING/TIN CERTIFICATION - Federal tax law requires us to report interest payments we make to you of $10 or more in a year, and to include your taxpayer identification number (TIN) on the report (the taxpayer identification number is your social security number if you are an individual). Interest includes dividends, interest and bonus payments for purposes of this rule. Therefore, we require you to provide us with your TIN and to certify that it is correct. In some circumstances, federal law requires us to withhold and pay to the IRS a percentage of the interest that is earned on funds in your accounts. This is known as backup withholding. We will not have to withhold interest payments when you open your account if you certify your TIN and certify that you are not subject to backup withholding due to underreporting of interest. (There are special rules if you do not have a TIN but have applied for one, if you are a foreign person, or if you are exempt from the reporting requirements.) We may subsequently be required to begin backup withholding if the IRS informs us that you supplied an incorrect TIN or that you underreported your interest income.
CREDIT VERIFICATION - You agree that we may verify credit and employment history by any necessary means, including preparation of a credit report by a credit reporting agency.
LOST, DESTROYED, OR STOLEN CERTIFIED, CASHIER’S, OR TELLER’S CHECKS - Under some circumstances you may be able to assert a claim for the amount of a lost, destroyed, or stolen certified, cashier’s or teller’s check. To assert the claim: (a) you must be the remitter (or drawer of a certified check) or payee of the check, (b) we must receive notice from you describing the check with reasonable certainty and asking for payment of the amount of the check, (c) we must receive the notice in time for us to have a reasonable opportunity to act on it, and (d) you must give us a declaration (in a form we require) of your loss with respect to the check. You can ask us for a declaration form. Even if all of these conditions are met, your claim may not be immediately enforceable. We may pay the check until the ninetieth day after the date of the check (or date of acceptance of a certified check). Therefore, your claim is not enforceable until the ninetieth day after the date of the check or date of acceptance, and the conditions listed above have been met. If we have not already paid the check, on the day your claim is enforceable we become obligated to pay you the amount of the check. We will pay you in cash or issue another certified check.
At our option, we may pay you the amount of the check before your claim becomes enforceable. However, we will require you to agree to indemnify us for any losses we might suffer. This means that if the check is presented after we pay your claim, and we pay the check, you are responsible to cover our losses. We may require you to provide a surety bond to assure that you can pay us if we suffer a loss.
CHANGING ACCOUNT PRODUCTS - We may change your account to another product offered by us at any time by giving you notice that your account will be changed to another product on a specified date. If your account is a time account, the change will not occur before the next maturity date of your account. If you do not close your account before the date specified in the notice, we may change your account to that other product on the date specified in the notice.
TRANSACTIONS BY MAIL - You may deposit checks by mail. You should indorse the check being sent through the mail with the words “For Deposit Only” and should include your correct account number underneath to ensure the check is credited to the correct account. You should use the pre-encoded checking deposit slips found behind your checks in your checkbook. If you do not use your deposit slip or provide us with instructions indicating how or where the check should be credited, we may apply it to any account or any loan balance you have with us or we may return the check to you. Receipts for such transactions will be mailed to you only if a self-addressed stamped envelope is provided. Following your deposit, examine your statement carefully or call us to ensure that we received the item. Do not send cash through the mail for deposit.
LEGAL ACTIONS AFFECTING YOUR ACCOUNT - If we are served with a subpoena, restraining order, writ of attachment or execution, levy, garnishment, search warrant, or similar order relating to your account (termed “legal action” in this section), we will comply with that legal action. Or, in our discretion, we may freeze the assets in the account and not allow any payments out of the account until a final court determination regarding the legal action. We may do these things even if the legal action involves less than all of you. In these cases, we will not have any liability to you if there are insufficient funds to pay your items because we have withdrawn funds from your account or in any way restricted access to your funds in accordance with the legal action. Any fees or expenses we incur in responding to any legal action (including, without limitation, attorneys’ fees and our internal expenses) may be charged against your account. The list of fees applicable to your account(s) provided elsewhere may specify additional fees that we may charge for certain legal actions.
CHECK STORAGE AND COPIES - You agree that you will not receive your canceled checks. We will store your canceled checks or copies of them for a reasonable retention period. You may request copies from us in the manner we require.
SECURITY - It is your responsibility to protect the account number(s) and access device(s) (e.g., an ATM card, point-of-sale card and/or PIN) for your account(s). Do not discuss, compare, or share information about your account number(s) or access device(s) with anyone unless you are willing to give them full use of your money. Checks and electronic withdrawals are processed by automated methods, and anyone who obtains your account number or access device could use it to withdraw money from your account, with or without your permission.
You agree that if we offer you services appropriate for your account to help identify and limit fraud or other unauthorized transactions against your account, such as positive pay or commercially reasonable security procedures, and you reject those services, you will be responsible for any fraudulent or unauthorized transactions which could have been prevented by the services we offered, unless we acted in bad faith or to the extent our negligence contributed to the loss.
Account numbers - Thieves can encode your account number on a check which looks and functions like an authorized check and can be used to withdraw money from your account. Your account number can also be used to issue a “remotely created check.” Like a typical check, a remotely created check (sometimes called a telecheck, preauthorized draft or demand draft) is a draft or check that can be used to withdraw money from your account. Unlike a typical check or draft, however, a remotely created check is not issued by the paying bank and does not contain the signature of the account owner (or a signature purported to be the signature of the account owner). For example, if you provide your account number in response to a telephone solicitation, the telephone solicitor can use the account number to issue a remotely created check to withdraw money from your account. If you have truly authorized the remotely created check (to purchase a service or merchandise, for example), it is properly payable. But it can be risky to authorize a remotely created check. A swindler could issue a remotely created check in an amount greater than you authorized, or issue additional remotely created checks that you have not authorized. We will not know if the withdrawal is unauthorized or in an amount greater than the amount you have authorized. Payment can be made from your account even though you did not contact us directly and order the payment.
Access devices - If you furnish your access device and grant actual authority to make transfers to someone who then exceeds that authority, you will be liable for the transfers unless we have been notified that transfers by that person are no longer authorized. Please review the additional information you have received or will receive regarding transfers by access device.
Blank checks - You must also take precaution in safeguarding your blank checks. Notify us at once if you think your blank checks have been lost or stolen. As between you and us, if you are negligent in safeguarding your checks, you must bear the loss entirely yourself, or share the loss with us if we failed to use ordinary care which substantially contributes to the loss.
MONITORING AND RECORDING TELEPHONE CALLS - We may monitor or record phone calls for security reasons and to ensure that you receive courteous and efficient service. You consent in advance to any such recording. We need not remind you of our recording before each phone conversation.
CLAIM OF LOSS - If you claim a credit or refund because of a forgery, alteration, or any other unauthorized withdrawal, you agree to cooperate with us in the investigation of the loss, including giving us an affidavit containing whatever reasonable information we require concerning your account, the transaction, and the circumstances surrounding the loss. You will notify law enforcement authorities of any criminal act related to the claim of lost, missing, or stolen checks or unauthorized withdrawals. We will have a reasonable period of time to investigate the facts and circumstances surrounding any claim of loss. Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys’ fees incurred by you.
You agree that you will not waive any rights you have to recover your loss against anyone who is obligated to repay, insure, or otherwise reimburse you for your loss. You will pursue your rights or, at our option, assign them to us so that we may pursue them. Our liability will be reduced by the amount you recover or are entitled to recover from these other sources.
EARLY WITHDRAWAL PENALTIES (and involuntary withdrawals) - We may impose early withdrawal penalties on a withdrawal from a time account even if you don’t initiate the withdrawal. For instance, the early withdrawal penalty may be imposed if the withdrawal is caused by our setoff against funds in the account or as a result of an attachment or other legal process. We may close your account and impose the early withdrawal penalty on the entire account balance in the event of a partial early withdrawal. See your notice of penalty for early withdrawals for additional information.
ADDRESS OR NAME CHANGES - You are responsible for notifying us of any change in your address or your name. Unless we agree otherwise, change of address or name must be made in writing by at least one of the account holders. Informing us of your address or name change on a check reorder form is not sufficient. We will attempt to communicate with you only by use of the most recent address you have provided to us. If provided elsewhere, we may impose a service fee if we attempt to locate you.
RESOLVING ACCOUNT DISPUTES - We may place an administrative hold on the funds in your account (refuse payment or withdrawal of the funds) if it becomes subject to a claim adverse to (1) your own interest; (2) others claiming an interest as survivors or beneficiaries of your account; or (3) a claim arising by operation of law. The hold may be placed for such period of time as we believe reasonably necessary to allow a legal proceeding to determine the merits of the claim or until we receive evidence satisfactory to us that the dispute has been resolved. We will not be liable for any items that are dishonored as a consequence of placing a hold on funds in your account for these reasons.
INTERNATIONAL ACH TRANSACTIONS - Financial institutions are required by law to scrutinize or verify any international ACH transaction (IAT) that they receive against the Specially Designated Nationals (SDN) list of the Office of Foreign Assets Control (OFAC). This action may, from time to time, cause us to temporarily suspend processing of an IAT and potentially affect the settlement and/or availability of such payments.
In this Disclosure and Agreement, the words “you” and “your” refer to the corporation,
partnership, limited liability company, sole proprietorship or other legal entity on whose behalf a Business Account application was executed to establish membership and open a business account with MSU Federal Credit Union. When the Business Account application is signed by an authorized representative of the legal entity, you agree to accept these terms and conditions and are electing to receive electronic correspondence from MSU Federal Credit Union whenever applicable law or regulation, or any of the terms of your various account agreements with the credit union, require that notice be provided in writing. In addition, each of the terms and conditions below apply to your accounts with the credit union.
You will receive certain MSUFCU correspondence at the email address you provide to us. The correspondence may include, but is not limited to: Account Statement Notices, Visa Statement Notices, Loan Billing Notices (including late payments), IRS Tax Form Notices, and Transaction Notices (non-sufficient fund and over-draft notices).
Electing electronic loan billing notices does not change your current payment method. Loans that are not set up for a monthly billing notice will be emailed only a late notice should the loan become past due.
The credit union will accumulate a 15-month, online archive of account and Visa statements and IRS Tax Forms.
Your consent for electronic IRS Tax Forms applies to every year the statement is furnished or until you cancel your electronic enrollment (see below for instructions).
You agree to electronically view any changes in disclosures, election information, or updates to MSUFCU products, services, or fees.
Some correspondence that you receive via email may contain links to the MSUFCU web site and ComputerLine for additional information, such as a check image. You will need to use your ComputerLine password to access this information.
While enrolled in electronic correspondence, you will not receive the same
correspondence via the U.S. Postal Service.However, you will continue to receive through the U.S. Postal Service certain correspondence
that is currently not available electronically.
You must have a valid email address that we will use to send information using unencrypted email. You will remain enrolled in our electronic service(s) as long as you meet the eligibility requirements, or unless you request otherwise. Consecutive undeliverable email attempts may cause the Credit Union to revoke electronic services until a valid email address is provided.
At any time, you may cancel enrollment for electronic correspondence by visiting MSUFCU’s web site at www.msufcu.org, logging in to ComputerLine, with your account number and password, then selecting E-Services from the menu and choosing paper notices. Or, you may contact a Credit Union representative at (517) 333-2424 or toll-free at 800- 678-4968.
When you cancel your enrollment in a service(s), we will resume mailing all of your correspondence as elected through the U.S. Postal Service at no additional charge to you* and discontinue electronic transmission of these items.
Except as provided below, if you wish to obtain a paper copy of the emailed
correspondence, we will provide it to you at no cost.*
It is your responsibility to inform us about any change to your name and/or email address. This email address will be used to also communicate with you electronically as necessary. You accept responsibility for the delivery of the electronic correspondence.
- You have access to the necessary hardware and software to view, print, or otherwise access necessary information to receive electronic communications from us and to access the MSUFCU web site. The minimum hardware requirements are IBM or fully IBM-Compatible PC, Apple, analog modem or Ethernet for internet connection, monitor, and printer. The minimum software requirements are an operating system that supports a web browser such as Internet Explorer v6.0, and Internet Service Provider (Internet Access), and an email application that supports HTML formatted emails.
*A fee may be charged for each overdraft transaction when paper Overdraft Notice is
selected, please review the most recent fee schedule for the cost.
Introduction. This Visa Debit Card for Business Agreement (“Agreement”) contains contract terms and other important information relating to your Visa Debit Card for Business (“Card”). These terms govern the operation of this account unless varied or supplemented in writing. This Agreement also incorporates any other terms and conditions provided separately with your account agreement as well as the terms of any disclosures you may have received. You should read this Agreement carefully and keep a copy for your records.
Applicable Law. This Agreement will be governed by the laws of the state in which your account is located as well as federal laws and regulations. Normal banking customs and practices also apply.
Definitions. Unless inconsistent, words and phrases used in this document shall be construed so that the singular includes the plural and the plural includes the singular. The words “we,” “our,” and “us” refer to the financial institution which issues the Card. The words “you” and “your” refer to the owner of the specific account for which Card transactions are permitted. The word “Cardholder” refers to any person authorized by you to use the Card.
Business Card Purpose. You and any Cardholder agree that this Card is for use by business owners and employees. The Card can be used for business purpose point-of-sale and Automated Teller Machine (ATM) transactions only. The Card may not be used for personal purposes. You acknowledge and understand that the Card shall not be treated as a consumer card under the provisions of state and federal law. You agree to provide written instructions to all Cardholders that the Card shall not be used for consumer purposes. We assume all transactions are for business purposes. We do not monitor transactions to determine their purpose.
Account Requirement, Payment Responsibility, Transferability, Enforceability. The
services described in this Agreement will be available to you only as long as you maintain a business checking or savings account with us. You are liable for the payment of Card transactions authorized by you or your agent or any Cardholder or their agent. This account may not be transferred or assigned without our written consent. If any terms of this Agreement cannot be legally enforced, it will be considered changed to the extent necessary to comply with applicable laws. If any part of this Agreement becomes unenforceable, it will not make any other part unenforceable.
How to Use the Business Card, Security Procedures. The Card allows Cardholders to directly access the business checking or savings account specified in your Card Application. We will issue Cards and codes to you at your request. Each Card will identify your business as well as the Cardholder.
You agree to the following security procedures. Each Cardholder must sign their Card before it may be used. You agree to require both a Card and a code to be used together to obtain cash at designated ATMs. However, you may use your Card to purchase goods or pay for services without a code. Once a Card has been issued it cannot be transferred to another person. You agree to immediately notify us when you terminate a Cardholder’s rights and to promptly return the Card to us. You agree to provide written instructions to all Cardholders about the importance of protecting the Card and code. You agree to examine your receipts and periodic statements in a timely manner. You agree that the dollar/frequency limits assigned to each
Cardholder will also act as a security procedure.
Termination and Amendments.
• We may terminate this Agreement by written or verbal notice to you. Written
confirmation will accompany any verbal notice.
• You may terminate this Agreement by verbal request to close card or account.
• You may terminate this Agreement by written notice to us.
We may make amendments to this Agreement in the same method as provided in the terms and conditions provided in your account agreement. Use of your Card after receipt of notice of an amendment constitutes your acceptance of the change.
Notices. Any notices mailed to you under this Agreement will be mailed to the address we have for you in our records. You will keep us notified of your current mailing address.
Minimum Account Balance. You must maintain a minimum account balance of $5.00 in your Business Spartan Saver account as a condition of using your Card and/or code to accomplish a transfer.
Order of Payment. Our policy is to post and pay Card transactions in the order they are received. We reserve the right to pay Card transactions before checks, drafts, and other items.
Overdraft Protection. If your account has an overdraft protection feature, unless otherwise agreed in writing, Card transactions that would otherwise overdraw your account will be covered by the overdraft protection feature. Your overdraft protection feature will be documented on a separate agreement. You should become familiar with that document as some of the terms, such as your liability for unauthorized transfers initiated with your Card, may vary from the terms of this Agreement.
Stop Payment. Only stop-payment requests from you or the Cardholder who authorized the transaction will be honored. However, because Card transactions are often processed immediately, stopping or amending payment is difficult and we cannot ensure that any request you make will be effective. In order to be effective, we must receive your request in time to give us a reasonable opportunity to act. Your request must precisely identify the transaction by date, time, location and dollar amount. Only you may release a stop-payment request.
TYPES OF TRANSACTIONS
Below are the types of transactions your Card will accommodate.
ATM Transfers. You may access your account by ATM using your Card and code to:
• make deposits to your checking account.
• make deposits to your savings account.
• get cash withdrawals from your checking account.
- you may withdraw no more than $500.00 per card per day.
• get cash withdrawals from your savings account.
- you may withdraw no more than $500.00 per card per day.
• transfer funds from your checking account to your savings account.
• transfer funds from your savings account to your checking account.
• transfer funds from your line of credit to your checking account.
• transfer funds from your line of credit to your savings account.
• get information about:
- the account balance of your checking account.
- the account balance of your savings account.
Some of these services may not be available at all terminals.
Your Option to Limit Cash Withdrawals. In addition to dollar amount limitations for
withdrawals using your Card and code that we may establish, you have the option to limit the amount of cash that can be withdrawn by your Card and code to $50.00 per day or some other amount acceptable to us.
Point-of-Sale Transactions. You may access your checking or savings account with your Card to purchase goods (in person, online, or by phone), pay for services (in person, online, or by phone), get cash from a merchant, if the merchant permits, or from a participating financial institution, and do anything that a participating merchant will accept.
Using your Card and/or code:
• you may not exceed $1,000.00 in transactions per day per card.
Currency Conversion: When you use your Visa Debit Card, Visa Credit Card, or ATM card for international transactions, a fee will be assessed. You agree to pay a 1.00% International Transaction Fee for ATM transactions and a 3.00% International Transaction Fee for “all other” international transactions and cash advances. The fee will be assessed on International transactions if a currency conversion does take place or if the transaction is processed in U.S. dollars. When you use your Visa Debit Card, Visa Credit Card or ATM card at a merchant that settles in, or at an ATM that dispenses, currency other than U.S. dollars, the charge will be converted into the U.S. dollar amount. The currency conversion rate used to determine the transaction amount in U.S. dollars is either a wholesale market rate or the governmentmandated
rate in effect the day before the processing date. The conversion rate in effect on
the processing date may differ from the rate in effect on the transaction date or posting date. The International Transaction Fee will be calculated after the transaction has been converted to U.S. dollars.
Advisory Against Illegal Use. You agree not to use your Card for illegal gambling or other illegal purpose. Display of a payment card logo by, for example, an online merchant does not necessarily mean that transactions are lawful in all jurisdictions in which the Cardholder may be located.
Non-Visa Debit Transaction Processing. We have enabled non-Visa debit transaction
processing. This means you may use your Visa Debit Card for Business on a PIN-Debit Network* (a non-Visa network) without using a PIN. The non-Visa debit network(s) for which such transactions are enabled are: NYCE, CO-OP, and CIRRUS Networks.
Examples of the types of actions that you may be required to make to initiate a Visa transaction on your Visa Debit Card for Business include signing a receipt, providing a card number over the phone or via the Internet, or swiping the card through a point-of-sale terminal.
Examples of the types of actions you may be required to make to initiate a transaction
on a PIN-Debit Network include initiating a payment directly with the biller (possibly via
telephone, Internet, or kiosk locations), responding to a logo displayed at a payment site and choosing to direct payment through that network, and having your identity verified using known information derived from an existing relationship with you instead of through use of a PIN.
The provisions of your agreement with us relating only to Visa transactions are not applicable to non-Visa transactions. For example, the additional limits on liability (sometimes referred to as Visa’s zero-liability program) and the streamlined error resolution procedures offered on Visa debit card transactions are not applicable to transactions processed on a PIN-Debit Network.
*Visa Rules generally define PIN-Debit Network as a non-Visa debit network that typically authenticates transactions by use of a personal identification number (PIN) but that is not generally known for having a card program.
• Please refer to the separate fee schedule for additional information on fees.
Terminal Transfers. You can get a receipt at the time you make a transfer to or from your account using an automated teller machine or point-of-sale terminal. However, you may not get a receipt if the amount of the transfer is $15 or less. The machine receipt provided to you is admissible evidence.
Retain Copies for Your Records. You should retain copies of all records including receipts, credit slips (for returned merchandise), and cancellation numbers (for cancelled reservations). You should also mark each transaction in your account record (but not while at a terminal). You should review your periodic statement for accuracy and compare your account record against your periodic statement to reconcile balances.
Periodic Statements. You will get a monthly account statement from us for your checking account that will also include a record of transactions made using your Card. The periodic statement provided to you is admissible evidence.
Periodic Statements. You shall be provided with a periodic statement for your savings
account not less than once a month in which an electronic fund transfer occurs, or quarterly, whichever is more frequent. The periodic statement provided to you is admissible evidence.
LIMITATIONS ON OUR LIABILITY
We will not be liable if:
• you do not have enough money in your account to make the transfer.
• you have an overdraft line and the transfer would cause you to exceed your credit limit.
• an ATM does not have sufficient cash.
• a terminal or system is not working properly.
• circumstances beyond our control (such as fire or flood) prevent the transfer.
• a merchant refuses to accept your Card.
• an ATM rejects your Card.
There may be other limitations on our liability.
Your Liability for Unauthorized Transfers. We will be liable for unauthorized transfers
unless we can prove 1) that your negligence substantially contributed to the unauthorized transfer; and 2) that we exercised reasonable care to prevent the loss.
Tell us AT ONCE if you believe your Card and/or code has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). You may be liable for any unauthorized transfer before the time you notify us that your Card and/or code has been compromised if:
(i) you or the Cardholder write your code on the Card.
(ii) you or the Cardholder keep your code with the Card.
(iii) you or the Cardholder voluntarily permit the Card and/or code to come into the
possession of a person who makes or causes an unauthorized transfer.
If you fail to notify us of an unauthorized transfer within 30 days after the receipt of a statement containing the unauthorized transfer, you shall be liable for subsequent unauthorized transfers that could have been prevented by timely notification.
Additional Limit on Liability. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any transactions using your lost or stolen Card if you report the unauthorized transfer within 60 days of the mailing date of the first statement showing the unauthorized transfer. Unauthorized transfers do not include: 1) any transaction by a business coowner, a cardholder or person authorized by a cardholder, or other person with an interest in or authority to transact business on the account; or 2) any transaction by a cardholder that exceeds the authority given by the Visa Business check card account owner. This additional limit on liability does not apply to ATM transactions or to transactions using your Personal Identification Number which are not processed by Visa.®
Contact in Event of Unauthorized Transfer. If you believe your Card and/or code has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, call or write us at the telephone number or address listed in this brochure.
Consequential Damages. We will not be liable for any consequential or incidental damages resulting from the unauthorized use of your Card.
If you believe that any provision of the Michigan Electronic Funds Transfer Act has been violated you should notify Michigan Department of Consumer and Industry Services, Office of Financial and Insurance Regulation, at PO Box 30224, Lansing, MI 48909.
You agree to examine your receipts and periodic statements and immediately report any errors or problems to us at the telephone number or address listed in this brochure. If you tell us orally, we may require your complaint or question in writing within 14 calendar days.
You have the right to seek correction of an error on your statement by notifying us orally
or in writing within 60 days after receipt of the statement containing an error. If you do not report within 60 days, we will be entitled to treat such information as correct and you will be precluded from asserting otherwise. We will respond to you within 10 business days (5 business days for a point-of-sale transaction processed by Visa) after notification by either 1) provisionally correcting your account; or 2) providing a written explanation stating the reason we believe the statement is correct. Provisional correction allows us to charge the correction back to your account for up to 60 days. An “error” consists of
(a) An unauthorized electronic fund transfer;
(b) An incorrect electronic fund transfer from or to your account; or
(c) The omission of an electronic fund transfer affecting your account.
MICHIGAN STATE UNIVERSITY FEDERAL CREDIT UNION
PO BOX 1208
EAST LANSING, MI 48826-1208
Business Days: Monday through Friday
Excluding Federal Holidays
Phone: 800-678-4968 or 517-333-2424
NOTICE OF ATM/NIGHT DEPOSIT FACILITY USER PRECAUTIONS
As with all financial transactions, please exercise discretion when using an automated teller machine (ATM) or night deposit facility. For your own safety, be careful. The following suggestions may be helpful.
1. Prepare for your transactions in advance (for instance, by filling out a deposit slip) to
minimize your time at the ATM or night deposit facility.
2. Mark each transaction in your account record, but not while at the ATM or night deposit facility. Always save your ATM receipts. Don’t leave them at the ATM or night deposit facility because they may contain important account information.
3. Compare your records with the account statements you receive.
4. Don’t lend your ATM Card to anyone.
5. Remember, do not leave your Card at the ATM. Do not leave any documents at a night deposit facility.
6. Protect the secrecy of your Personal Identification Number (PIN). Protect your ATM
Card as though it were cash. Don’t tell anyone your PIN. Don’t give anyone information
regarding your ATM Card or PIN over the telephone. Never enter your PIN in any ATM
that does not look genuine, has been modified, has a suspicious device attached, or is operating in a suspicious manner. Don’t write your PIN where it can be discovered. For example, don’t keep a note of your PIN in your wallet or purse.
7. Prevent others from seeing you enter your PIN by using your body to shield their view.
8. If you lose your ATM Card or if it is stolen, promptly notify us. You should consult the
other disclosures you have received about electronic fund transfers for additional
information about what to do if your Card is lost or stolen.
9. When you make a transaction, be aware of your surroundings. Look out for suspicious activity near the ATM or night deposit facility, particularly if it is after sunset. At night, be sure that the facility (including the parking area and walkways) is well lighted. Consider having someone accompany you when you use the facility, especially after sunset. If you observe any problem, go to another ATM or night deposit facility.
10. Don’t accept assistance from anyone you don’t know when using an ATM or night
11. If you notice anything suspicious or if any other problem arises after you have begun an ATM transaction, you may want to cancel the transaction, pocket your Card and leave. You might consider using another ATM or coming back later.
12. Don’t display your cash; pocket it as soon as the ATM transaction is completed and
count the cash later when you are in the safety of your own car, home or other secure
13. At a drive-up facility, make sure all the car doors are locked and all of the windows are rolled up, except the driver’s window. Keep the engine running and remain alert to your surroundings.
14. We want the ATM and night deposit facility to be safe and convenient for you. Therefore, please tell us if you know of any problem with a facility. For instance, let us know if a light is not working or there is any damage to a facility. Please report any suspicious activity or crimes to both the operator of the facility and the local law enforcement officials immediately.
|Business Account Fee Schedule|
|Minimum Balance Fee|
|Small Business Checking||None|
|Standard Business Checking||$15.00/month|
|Money Market Business Checking||$25.00/month|
|Activity Business Checking||$20.00/month|
|Excess Transaction Fees|
|Business Spartan Saver||$0.25/item|
|Small Business Checking||$0.25/item|
|Standard Business Checking||$0.25/item|
|Money Market Business Checking||$0.25/item|
|Activity Business Checking||$0.15/item|
|Sweep Feature Fee
(if aggregate account balance is less than $25,000)
|eDeposit (Remote Deposit Capture)|
|Standard Scanning Option||FREE|
|High-Speed Scanning Option||$35.00/month|
|Online Banking via ComputerLine||FREE|
|Bill Payment Fee|
|Paper||20 Free / $0.75 after|
|Provide Currency||Up to $2,500 free per day/ then $0.10 per $100|
|Provide Coin||Up to $1,000 free per day / then 1.0%|
|Deposited Coin||Up to $1,000 free per day / then 1.0%|
|Wire Transfer Fees|
|Domestic Wire Transfer||$20.00 for sending|
|International Wire Transfer||$40.00 for sending|
|Incoming Wire Transfer||$5.00 for receiving|
|International Item Fees|
|International Currency - Ordering||$14.00|
|Processing International Checks|
(eligible for short collection)
(requiring long collection)
|Cashier's Check||$2.00 (first check free)|
|Credit / Debit / ATM Card Replacement||$10.00|
|Non-CO-OP Network ATM||$1.00/transaction|
|International Service Assessment (ISA)|
|ATM & PIN-based POS Transactions1||1.0% of the International Transaction Amount|
|Signature-based Transactions1||3.0% of the International Transaction Amount|
|1 Calculated after the transaction has been converted to U.S. dollars.|
|Bond Coupon Processing||$10.00|
|Canceled Check Copy||$5.00|
(1 hour minimum)
|Overdraft Notice (Paper)||$5.00|
|Non-Sufficient Funds (NSF)||$30.00|
|Returned Deposited Item|
|Re-Deposit Returned Item||$5.00|
|Early Account Closure||$20.00|
|Dormant Account Closure||$5.00/month|
For inquiries, contact us at:
Michigan State University Federal Credit Union
PO Box 1208
East Lansing, MI 48826-1208
Phone: 517-333-2365 or 800-678-4968
Michigan State University Federal Credit Union is owned by its members and run by a Board of Directors you elect. You can be confident that your financial privacy is a top priority of this credit union. We are required by law to give you this privacy notice to explain how we collect, use and safeguard your personal financial information. If you have any questions please contact a member service representative by phone at 517-333-2424 or 800-678-4968 or send a secure message using the “Contact Us” form at www.msufcu.org.
Information We Collect About You
We collect nonpublic personal information about you from the following sources:
- Information we receive from you on membership and loan application and other forms;
- Information about your transactions with us or others;
- Information we receive from a consumer reporting agency;
- Information obtained when verifying the information you provide on an application or other forms, such as from your current or past employers or from other institutions where you conduct financial transactions.
Information About You We Share
We may disclose information we collect about you under circumstances as permitted or required by law. These disclosures typically include information to process transactions on your behalf, conduct the operations of our credit union, follow your instructions as you authorize, or protect the security of our financial records.
We are committed to providing you with competitive products and services to meet your financial needs, which necessitates that we share information about you with our affiliates, to complete your transactions and to provide you with certain financial opportunities. We have also entered into agreements with other companies that provide either services to us or additional financial products for you to consider.
Under these agreements, we may disclose all of the information we collect, as described above, to companies that perform marketing or other services on our behalf or to other financial institutions with whom we have joint marketing agreements. To protect your privacy, we require these companies to agree to maintain strong confidentiality protections and we prohibit their use of this information other than to carry out the purposes for which it is disclosed.
If you terminate your membership with Michigan State University Federal Credit Union, we will not share information we have collected about you, except as permitted or required by law.
Steps We Take to Protect Your Information
We restrict access to nonpublic personal information about you to those employees who have a specific business purpose in utilizing your data. Our employees, members of our Official Family, members of the Board of Directors and Committee Members shall maintain confidentiality and member privacy. We maintain physical, electronic, and procedural safeguards that comply with federal regulations and industry practices to safeguard your nonpublic personal information.
This disclosure is provided in compliance with the Federal Expedited Funds Availability Act and Regulation CC. This policy applies to all deposits into business checking accounts at the Michigan State University Federal Credit Union at 3777 West Road; PO Box 1208; East Lansing, MI 48826-1208, and at all of its branches. Deposits made at Credit Union Family Service Centers are governed by the Availability Policy Disclosure, which is included in this disclosure.
Our policy is to make funds from your deposits available to you immediately. At that time, you can withdraw funds in cash and/or we will use the funds to pay checks that you have written. For determining availability of your deposits, every day is a business day, except Saturday, Sunday, and federal holidays. If you make a deposit on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit on a day that we are not open, we will consider that the deposit was made on the next business day.
Holds On Other Funds (Check Cashing): If we cash a check for you that is drawn on another financial institution, we may withhold the availability of a corresponding amount of funds that are already in your business checking account. Those funds will be available at the time funds from the check we cashed would have been available if you had deposited it.
Holds On Other Funds (Other Accounts): If we accept for deposit a check for you that is drawn on another financial institution, we may make funds from the deposit available for withdrawal immediately, but delay your availability to withdraw a corresponding amount of funds that you have on deposit in another account with us. The funds in the other account would then not be available until the time period, described elsewhere in this disclosure for the type you deposited, has lapsed.
Holds On Funds Deposited by eDeposit (Remote Deposit Capture): If we accept for
deposit a check deposited through eDeposit (Remote Deposit Capture), the first $1,500.00 of your deposits will be immediately available, and the remaining funds will be available on the second business day after the day of your deposit. In some cases, we may need to extend the hold on a deposited item, we will provide you with a notice and tell you when the funds will be available.
Delayed Availability: In some cases, we will not make all of the funds that you deposit by check available to you immediately. Depending on the type of check you deposit, funds may not be available until the second business day after the day of your deposit. However, the first $200.00 of your deposit will be available on the first business day after the day we receive your deposit. If we are not going to make all of the funds from your deposit available immediately, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to one of our employees, or if we decide to take this action after you have left the premises, we will mail the notice by the day after we receive your deposit.
Longer Delays May Apply
In addition, funds you deposit by check may be delayed for a longer period under the
a) We believe a check you deposit will not be paid.
b) You deposit checks totaling more than $5,000.00 on any one day.
c) You redeposit a check that has been returned unpaid.
d) You have overdrawn your account repeatedly in the last six months.
e) There is an emergency, such as a failure of communication or computer equipment.
We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. They will generally be available no later than the seventh business day after the day of your deposit.
Special Rules for New Accounts
The following special rules will apply during the first thirty (30) days your business checking account is open:
Funds from the deposits of cash and the first $5,000.00 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s and state and local government checks will be available immediately if the deposit meets certain conditions. For example, the checks must be payable to you. The excess over $5,000.00 will be available no later than the ninth business day after the day of your deposit.
Funds from all other check deposits will be available no later than the ninth business day after the day of your deposit.
Please remember that even after we have made funds available to you, and you have
withdrawn the funds, you are still responsible for checks you deposit that are returned to us unpaid and for any other problems involving your deposit.
If you have any questions, please contact your branch manager.
Credit Union Family Service Centers
Service Centers, managed by the Credit Union Service Center Corporation, are available for your use. A location guide is available at http://www.cuservicecenter.com/ or 800-919-CUSC (2872). Transactions performed at Service Center locations are subject to their fees, rules, policies, and procedures.
Shared Branch Availability Policy Disclosure: Shared branches are defined as those offices where members of many different credit unions are able to perform transactions to their own Credit Union account. The policy at shared branches is to make funds from your deposits available to you on the same business day your deposit is received. A deposit at a shared branch is considered received when it is accepted with all appropriate endorsements. For determining the availability of your deposits, every day is a business day that your own Credit Union is open which may differ from the days the shared branch is open. If you make a deposit on a day your Credit Union is open, that day will be considered the day of deposit. However, if you make a deposit at a shared branch on a day that your Credit Union is not open, your
deposit will be considered made on the next business day your Credit Union is open.
Longer Delays May Apply: In some cases, all of the funds that you deposit by check will not be available to you on the same business day you make the deposit. Local checks may be held for two (2) business days after the day of deposit and non-local checks may be held for five (5) business days after the day of deposit. Depending on the type of check you deposit, funds may not be available until the tenth business day after the day of deposit. However, the first $200.00 of your deposits will be available on the first business day after we receive your deposit. If all of your funds from your deposit are not available on the same business day, you will be notified at the time you make your deposit as to when your funds will be available. If your deposit is not made directly to a shared branch employee, or if this action is taken after you have left the premises, a notice will be mailed to you by the business day after your deposit is received. If you will need the funds from a deposit right away, you should ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period if there is an emergency, such as failure of communications or computer equipment. Should such an emergency occur, we will notify you and tell you when the funds will be available. They will generally be available no later than the second business day after the day of deposit.
This Platinum Resource Visa Card Agreement ("Agreement") includes this document, any letter, card carrier, card insert, addendums, any other document accompanying this Agreement, any application that you signed or submitted to the credit union, and any notification of changes to this agreement.
The words "you" and "your" mean each business or organization ("organization" or "Company") who agrees to be bound by this Agreement as set forth below. The words "we" "our" "us" and "credit union" means Michigan State University Federal Credit Union or anyone to whom the credit union transfers this Agreement. The word "card" means the Platinum Resource Visa Card(s) you receive from the credit union and any duplicates, renewals, or substitutions the credit union issues to you. The word "account" means the credit card line of credit account the credit union approves for you that is subject to this Agreement.
1. Persons Bound - By signing (in ink, electronically, or digitally) any application stating your agreement to be bound by this Agreement or by using the card or account we issue to you, or by authorizing an employee to use the card or account we issue to you, you agree to be bound by the terms of this Agreement.
2. Responsibility - You have applied to us for a Visa Platinum Resource Card line of credit account. We have approved the account and issued you a Card(s). By activating and using this card(s), you agree to be bound by the terms and conditions of this agreement. You promise to repay all debts and the FINANCE CHARGE thereon arising from any authorized use of the Card(s). You agree that only authorized users will use the Card(s). You agree not to let an unauthorized person use the Card(s). In addition, you agree that any authorized user, may make purchases individually, and if cash advances are permitted for your account, may obtain cash advances individually. If any Guarantors have signed the application, each of the Guarantors, separately and jointly with each other, is liable for all amounts charged to the account and any FINANCE CHARGE thereon.
3. Statement of Business Purpose - You agree that you have represented to us that you are obtaining your account for business purposes. You also agree that all cards, purchases, balance transfers, and use of convenience checks issued on your account and any other use of your account will be used solely for business or commercial purposes. You agree that you will never use your account for any personal, family or household purposes.
4. Credit Line - We have established a self-replenishing line-of-credit for you and have notified you of the amount thereof (“credit limit”) via the Addendum included with this disclosure. You agree not to let your Account balance exceed such amount. Each payment you make on the Account will replenish your credit limit by the part of that payment which is applied to principal. We may reduce your credit limit from time to time, change the rate in accordance with the conditions of the cardholder information section of the agreement, or may, with good cause, revoke your Card(s) and terminate this Agreement. In any event, we will give you written notice of such action. “Good cause” includes your failure to satisfy the terms of this Agreement, or adverse reevaluation of your creditworthiness; or if any warranty, representation or statement made or furnished to us by you or on your behalf under this Agreement or any related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter; the dissolution or termination of your existence as a going business, your insolvency, or the appointment of a receiver for any part of your property; or if you or any Guarantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of your or any guarantor’s property rights or your or any guarantor’s ability to repay the amounts owing or perform their respective obligations under this Agreement or any of the related documents; or any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against you; or any change in ownership of twenty percent (20%) or more of your common stock; or if any material or adverse change occurs in your financial condition; or if we believe the prospect of payment or performance of the line-of-credit is impaired; or if we, in good faith, believe the credit union to be insecure.
5. Using the Card - We have enclosed or will send in the near future a Card or Cards embossed as you have directed. As soon as received, each Card must be signed (in the space provided on the back) by the person whose name is embossed thereon. That signature must be in the same form as embossed on the front of the Card. Your liability under this Agreement does not depend upon whether an authorized user signs his or her Card. You may use your card to make purchases from merchants and others who accept your card. The credit union is not responsible for the refusal of any merchant or financial institution to honor your card. If you wish to pay for goods or services over the Internet, you may be required to provide card number security information before you will be permitted to complete the transaction. In addition, the credit union may permit you to obtain cash advances from the credit union, from other financial institutions that accept your card, and from some automated teller machines (ATMs). (Not all ATMs may accept your card.) If the credit union authorizes ATM transactions with your card, it will issue you a personal identification number (PIN). To obtain cash advances from an ATM, you must use the PIN that is issued to you for use with your card. You agree that you will not use your card for any transaction that is illegal under applicable federal, state or local law. Even if you use your card for an illegal transaction, you will be responsible for all amounts and FINANCE CHARGE incurred in connection with the transaction. We will not be liable if you or your authorized users engage in any illegal transactions. If you are permitted to obtain cash advances on your account, you may also use your card to purchase instruments and engage in transactions that we consider the equivalent of cash. Such transactions will be posted to your account as cash advances and include, but are not limited to, wire transfers, money orders, bets, lottery tickets, and casino gaming chips. This paragraph shall not be interpreted as permitting or authorizing any transaction that is illegal.
6. Interest Rate - The Interest Rates applicable to purchases, cash advances, and balance transfers are disclosed on the Addendum that accompanies this Agreement. Any penalty rate that may be imposed for failing to make a payment by the Payment Due Date is also disclosed on the Addendum. These rates may be either fixed or variable as disclosed in the Addendum accompanying this Agreement. If your rate is fixed, the rate charged on purchases, cash advances, balance transfers, and any penalty rate will be fixed and will not vary from month to month unless we notify you in advance that the rate will change. If the rate for your account is variable, as indicated on the accompanying Addendum, the rate charged on purchases, cash advances, balance transfers and any penalty rate will vary periodically as disclosed in the Addendum accompanying this Agreement. The initial rate on your account for certain types of transactions may be an introductory discounted rate (Introductory Rate) that is lower than the rate that would ordinarily apply for that type of transaction. If an Introductory Rate applies to your account, the rates and the period of time it will be effective is shown on the Addendum accompanying this Agreement. After the Introductory Rate period expires, the Interest Rate will automatically increase to the rates that would normally apply for that type of transaction based on the terms of this Agreement.
7. Penalty Rate - We have enclosed or will send in the near future a Card or Cards embossed as you have directed. As soon as received, each Card must be signed (in the space provided on the back) by the person whose name is embossed thereon. That signature must be in the same form as embossed on the front of the Card. Your liability under this Agreement does not depend upon whether an authorized user signs his or her Card. You may use your card to make purchases from merchants and others who accept your card. The credit union is not responsible for the refusal of any merchant or financial institution to honor your card. If you wish to pay for goods or services over the Internet, you may be required to provide card number security information before you will be permitted to complete the transaction. In addition, the credit union may permit you to obtain cash advances from the credit union, from other financial institutions that accept your card, and from some automated teller machines (ATMs). (Not all ATMs may accept your card.) If the credit union authorizes ATM transactions with your card, it will issue you a personal identification number (PIN). To obtain cash advances from an ATM, you must use the PIN that is issued to you for use with your card. You agree that you will not use your card for any transaction that is illegal under applicable federal, state or local law. Even if you use your card for an illegal transaction, you will be responsible for all amounts and FINANCE CHARGE incurred in connection with the transaction. We will not be liable if you or your authorized users engage in any illegal transactions. If you are permitted to obtain cash advances on your account, you may also use your card to purchase instruments and engage in transactions that we consider the equivalent of cash. Such transactions will be posted to your account as cash advances and include, but are not limited to, wire transfers, money orders, bets, lottery tickets, and casino gaming chips. This paragraph shall not be interpreted as permitting or authorizing any transaction that is illegal.
8. Finance Charges - In order to avoid a FINANCE CHARGE on purchases made since your last statement date, you must pay the Total New Balance shown on your statement within 25 days of the statement closing date. Otherwise the FINANCE CHARGE on purchases is calculated on the next statement period on previously billed buy unpaid purchases and on new purchases from the date they are posted to your account. Balance transfers and cash advances are always subject to a finance charge from the date they are posted to your account. The FINANCE CHARGE (interest) on your purchases, balance transfers and cash advances is calculated at a monthly periodic rate as set forth on the Addendum accompanying this Agreement. For purchases, the finance charge is computed by applying the periodic rate to the average daily balance of purchases. To get the average daily balance of purchases, we take the beginning outstanding balance of purchases, add in any new purchases, and subtract any payment and/or credits that we apply to the purchase balance. This gives us the daily balances of purchases. Then, we add all te daily balances of purchases for the billing cycle together and divide the total by the number of days in the billing cycle. This gives us the average daily balance of purchases.
For cash advances, the finance charge is computed by applying the periodic rate to the average daily balance of cash advances. To get the average daily balance of cash advances, we take the beginning outstanding balance of cash advances each day, add in any new cash advances, and subtract any payments and/or credits that we apply to the cash advance balance. This gives us the daily balance of cash advances. Then, we add all the daily balances of cash advances for the billing cycle together and divide by the total number of days in the billing cycle. This gives us the average daily balance of cash advances.
9. Other Charges - In addition to the Interest Rate, the following additional fees may be imposed on your account. If applicable to your account, the amount of these fees is disclosed on the Addendum accompanying this Agreement. Your account may also be subject to additional fees and charges as set forth on the Addendum accompanying this Agreement.
a. Cash Advance Fee. If you account is subject to a Cash Advance Fee, the fee will be added to your account when you obtain a cash advance on your account.
b. Balance Transfer Fee. If you account is subject to a Balance Transfer fee, the fee will be added to your account when you transfer a balance from an account of another creditor to the account subject to this Agreement.
c. Annual Fee. If your account is subject to an Annual Fee, the fee will be added to your account upon the issuance of your card. The fee will be included on the first billing statement you receive after you open your account and will be charged each following year during the same month that you were first charged the fee until you close your account.
d. Over-the-Limit Fee. If you account is subject to an Over-the-Limit Fee, the fee will be added to your account if your account balance ever exceeds your credit limit during a billing cycle. This fee will continue to be charged for each subsequent month until your account balance is equal to, or less than, your credit limit.
e. Returned Check Fee. If your account is subject to a Returned Check Fee, the fee will be added to your account whenever you make a payment by check and the check is returned to us unpaid.
f. Late Payment Fee. If you account is subject to a Late Payment Fee, the fee will be added to your account when you do not make the required minimum payment by, or within the number of days of, the statement Payment Due Date set forth on the Addendum accompanying this Agreement.
g. International Service Assessment. If your account is subject to an International Service Assessment, a fee may be added to your account for transactions made outside of the United States or in a foreign currency. Transactions that are completed in a foreign currency or in a foreign country using a Visa branded card or processed by a network operated or affiliated with Visa may be subject to a fee as set forth on the Addendum accompanying this Agreement. All International Service Assessments are calculated based on the transaction amount after it is converted to U.S. dollars.
h. Card Replacement Fee. If your account is subject to a Card Replacement Fee, a fee will be added to your account whenever you request a replacement card for your account.
i. Document Copy Fee. If your account is subject to a Document Copy Fee, except as limited by applicable law, a fee may be added to your account for each copy of a sales draft or statement that you request.
10. Payments - Each month you must pay at least the minimum payment shown on your statement by the date specified on the statement and no later than seven (7) days from the statement closing date, whichever is later. If your statement says the payment is “Now Due,” your payment is due no later than seven (7) days from the statement closing date. All payments must be made in U.S. dollars and if made by a negotiable instrument, such as a check or money order, must be in a form acceptable to us and drawn on a U.S. financial institution. If you make extra or larger payments, you are still required to make at least the minimum payment each month your account has a balance (other than a credit balance). The minimum payment for your account is shown on the Addendum accompanying this Agreement. In addition to the minimum payment, you must also pay, by the date specified above, the amount of any prior minimum payment(s) that you have not made, all outstanding unpaid fees and charges, and any amount you are over your credit limit. The credit union also has the right to demand immediate payment of any amount by which you are over your credit limit. Subject to applicable law, your payments may be applied to what you owe to the credit union in any manner the credit union chooses. We will apply your payments in any manner we choose, at our discretion. All payments will be processed as of the close of the business day on which they are received. We reserve the right to change the manner in which payments are allocated.
11. Communications - Any communications concerning a disputed balance, including an instrument tendered as full satisfaction of a debt, must be sent directly to:
MSU Federal Credit Union
Attn: Disputed Platinum Resource Credit Card Payoff Dept.
PO Box 1208
East Lansing, MI 48826-1208
12. International Service Assessment (ISA) - If you make a purchase or obtain a cash advance in a foreign currency, the transaction will be billed to your account in U.S. dollars. Visa will convert the transaction into U.S. dollars depending on whether you complete the transaction with a Visa card or if the transaction is processed by a network operated or affiliated with Visa. For transactions processed through Visa, the exchange rate is used to convert foreign currency transactions to U.S. dollars is either a government-mandated exchange rate or a wholesale exchange rate that is selected by Visa. The rate Visa uses for a particular transaction is the rate Visa selects for the applicable currency on the day the transaction is processed. The exchange rate used to convert the transaction may differ from the rate Visa receives and may differ from the rate applicable on the date the transaction occurred or was posted to your account. Your account will be assessed, and you agree to pay, a 1.00% International Service Assessment Fee for ATM and point-of-sale (i.e., PIN-based) transactions and a 3.00% International Service Assessment Fee for "all other" International transactions and cash advances, which fee will be calculated after the transaction has been converted to U.S. dollars.
13. Collection Costs - You agree to pay all costs of collecting the amount you owe under this Agreement, including court costs and reasonable attorney’s fees, as permitted by applicable state law.
14. Security Interest - To secure performances of your obligations under this Agreement, you and all Guarantors hereby grant to the credit union a security interest in funds you may have a deposit with the Credit Union from time to time and in any other money the Credit Union may owe you, except for shares in an Individual Retirement Account (IRA) or in any other account that would lose special tax treatment under state or federal law if given as security. You understand and intend that by reason of such security interest here granted the Credit Union may satisfy your indebtedness under this Agreement by charging such deposit account(s) maintained with the Credit Union if you default in payment under this Agreement, without further notice to you or to any Guarantor. These shares may be withdrawn unless you are in default under this Agreement. If you give the credit union a specific pledge of shares by signing a separate pledge of shares, your pledged shares will secure your account. You may not withdraw amounts that have been specifically pledged to secure your account until the credit union agrees to release all or part of the pledged amount. Collateral securing other loans you have with the credit union will also secure this loan, except that a Guarantor's principal dwelling or property used for personal, family or household purposes will never be considered as security for this account, notwithstanding anything to the contrary in any other agreement.
15. Default - You will be in default and we may, to the extent permitted by law, terminate your credit line and declare the entire unpaid balance of the account immediately due and payable, under any of the following conditions:
• you fail to make the minimum payment by the statement payment due date;
• you breach any other promises made in or conditions of the Agreement and/or any other agreement with us;
• any of your cards is used for an illegal transaction;
• you or any Guarantor become involved in any insolvency, receivership, guardianship, conservatorship, or any other proceeding which determines you or any such Guarantor are incapable of managing your financial affairs, including filing for Bankruptcy;
• you have or any Guarantor has made a false or misleading statement in any credit application and/or in any representation to us while you owe money on your account;
• a judgement or tax lien is filed against you or any Guarantor, or any attachment or garnishment is issued against any of your or any Guarantor's property or accounts, including anyone starting an action or proposing to seize any of your or your Guarantor's funds on deposit with us;
• we in good faith determine that your or any Guarantor's creditworthiness (which includes your or any Guarnator's ability to repay us) has become unsatisfactory due to change in employment, increase in other obligations, or because of any other reason, time being of the very essence;
• any Guarantor dies;
• your organization ceases to exist;
• your organization changes its corporate structure; or
• government action precludes us from imposing the annual percentage rate or a government authority has notified us that continued advances constitute an unsafe and unsound practice.
If immediate payment is demanded, you agree to continue paying finance charges, at the Interest Rate then in effect, until what you owe has been paid.
16. Changing or Terminating Authorized Users - The credit union may change the terms of this Agreement and any attached Addendum from time to time. Notice of any change will be given in accordance with applicable law. If permitted by law, the change will apply to your existing account balance as well as to future transactions.
Either you or the credit union may terminate this Agreement at any time, but termination by you or the credit union will not affect your obligation to pay the account balance plus any finance and other charges you owe under this Agreement. You are also responsible for all transactions made to your account after termination, unless the transactions were unauthorized.
The card(s) you receive remain the property of the credit union and you must recover and surrender to the credit union all cards upon request or upon termination of this Agreement whether by you or by the credit union. The credit union has the right to require you to pay your full account balance at any time after your account is terminated, whether it is terminated by you or the credit union.
17. Changing or Terminating Authorized Users - Upon your request, we may issue additional cards for authorized users that you designate. You must notify us in writing of any termination of an authorized user's right to access your account. Your letter must include the name of the user and your account number and/or any sub-account number issued to the authorized user along with the authorized user's card and any convenience or other access checks issued to the authorized user. If you cannot return the authorized user's card or access checks and if you request your account to be closed, we will close your account and you may apply for a new account. You will be responsible for any transactions that are authorized but have not been posted to the account.
18. Liability for Unauthorized Use - Lost/Stolen Card Notification - You may be liable for the unauthorized use of your card or account. Notify us immediately, in writing at: MSU Federal Credit Union, PO Box 1208, East Lansing, MI 48826-1208 or by telephone at 800-847-2383 or 517-333-2323 during business hours or 800-453-4270 after hours if your card is lost, stolen or you suspect there has been an unauthorized use of your card or account. After we receive your notification, you will not be liable for any further unauthorized use of your card or account. If you are an organization with 10 or more employees and we have issued 10 or more cards on your account for use by your employees, you will be liable for all unauthorized use of your cards or account before notification to us unless your liability is limited by Visa liability limitation rules as set forth below. Otherwise, you will be liable for up to $50 for the unauthorized use of your card or account before notification to us unless your liability is further limited by Visa liability limitation rules as set forth below. Unauthorized use does not include use of a card by an authorized user in an unauthorized manner. If your card is a Visa, you will not be liable for any unauthorized purchase transaction if you exercise reasonable care in safeguarding your card from risk of loss or theft, have not reported two or more incidents of unauthorized use in the last (12) months, and if your account is in good standing.
19. Credit Review and Release of Information - You and all Guarantor's authorize the Credit Union to investigate your or your Guarantors' credit standing when opening or reviewing your account. You and all Guarantors authorize the credit union to disclose information regarding your account and your Guarantors' obligations to credit bureaus and creditors who inquire about your or your Guaranators' credit standing. All Guarantors are hereby notified that negative information will be provided to appropriate consumer reporting agencies if you fail to perform your obligation under this Agreement. If your account is eligible for emergency cash and/or emergency card replacement services, and you request such services, you agree that we may provide information about you and your account that is necessary to provide you with the requested service(s).
20. Returns and Adjustments - Merchants and others who honor your card may give credit for returns or adjustments, and they will do so by sending the credit union a credit which will be posted to your account. If your credits and payments exceed what you owe the credit union, the amount will be applied against future purchases and cash advances. If the credit balance amount is $1 or more, it will be refunded upon your written request or automatically after six (6) months. If a merchant discloses a policy such as but not limited to "no returns," "no refunds," "as is," or "all sales final" you will be bound by that policy when you use your Account to buy goods or services from that merchant. When using your Account to make a travel or lodging reservation, obtain the merchant's cancellation policy and follow it if you wish to cancel. If you cancel, obtain the merchant's cancellation number that it is required to provide to you. The merchant may charge you for a cancelled transaction unless you can provide us with the merchant's cancellation number. If you authorize a merchant to charge your Account for repeat transactions without your Card, you must notify the merchant, and not us, when you want to discontinue the repeat transactions. If you disagree with a transaction on your statement or have a dispute with a merchant as a result of a transaction, you agree to provide us with information and assistance we reasonably request. Otherwise, you will pay us for any resulting loss we have, unless we are prohibited by law from holding you liable for our loss.
21. Additional Benefits / Card Enhancements - The credit union may, from time to time, offer additional services to your account, such as travel accident insurance or a liability waiver program, at no additional cost to you. You understand that the credit union is not obligated to offer such services and may withdraw or change them at any time.
22. Effect of Agreement - This Agreement is the contract which applies to all transactions on your account even though the sales, cash advances, credit or other slips you sign or receive may contain different terms.
23. No Waiver - The credit union can delay enforcing any of its rights any number of times without losing them.
24. Statements and Notices - Unless separate sub-accounts have been set up under your account for authorized users, statements and notices will be mailed to you at the most recent address you have given the credit union. You agree to notify us at least 10 days in advance of any change in address. Notice sent to any one person bound under this Agreement will be considered notice to all. If we have agreed to send statements for sub-accounts under your account that been issued to authorized users, we will send statements to the most recent address you have provided for that user. You agree to notify us at least 10 days in advance of any change in address for an authorized user. You are responsible for payment of all amounts shown on a statement delivered to an authorized user.
25. Notification of Change in Legal Structure, Officers, or Owners - You agree to notify us within 10 days of any change in your legal structure or any change in your officers or owners.
26. Severability and Final Expression - This Agreement is the final expression of the terms and conditions of your account. This written Agreement may not be contradicted by evidence of any alleged oral agreement. Should any part of this Agreement be found to be invalid or unenforceable, all other parts of this Agreement shall remain in effect and fully enforceable to the fullest extent possible under this Agreement.
27. Gambling Transactions Prohibited - You may not use your card to initiate any type of gambling transaction.
28. Internet Gambling Transactions Prohibited - You may not use your card to initiate any type of electronic gambling transaction through the Internet.
29. Assignment - We may sell, assign or transfer all or any portion of your Account, or any balance due under your Account, without prior notice to you. You may not sell, assign or transfer your Account or any obligations under this Agreement.
30. Credit Union Membership - You understand and agree that the closing of your Credit Union Business Regular Share Account terminates your status as a member of the Credit Union, and upon such closing, you can no longer obtain credit with the Platinum Resource Visa Credit Card.
31. Personal Guaranty - If you signed the application as a Personal Guarantor, you unconditionally guarantee (i) the full and prompt payment when due, whether by acceleration or otherwise, and at all times hereafter, of all credit extended, together with applicable finance charges, fees and collection costs; and (ii) the full and prompt performance of all the terms, covenants, conditions and agreements relating to this Account. This guaranty can be revoked by a Personal Guarantor by providing 60 days' written notice to us at our address below, or at such other address as we may specify from time to time, but any such revocation will in no way affect any obligations of the Personal Guarantor existing on or prior to the effective date of such revocation.
32. Governing Law - This Agreement is governed by the laws of the state of Michigan and applicable federal laws.
33. Notification Information for Reporting Lost, Stolen, and Unauthorized Use of Card - Notify us at once if your card has been lost or stolen or if you suspect that your card is being used without your permission at the following:
During credit union hours contact:
800-847-2383 or 517-333-2323;
800-453-4270 after hours.